Feature/OPED
Africa Beyond Russia’s Grains Partnerships
By Kestér Kenn Klomegâh
Until sustainable food security is established through modernizing agriculture and ensuring adequate support for local farmers, Russia’s grain supply would be a soft geostrategic bait (i) to reinforce the existing time-tested relationships with Africa and (ii) to solicit an endorsement for the unprovoked war in Ukraine.
In a speech delivered on March 20, 2023, during the interparliamentary conference ‘Russia-Africa’ held in Moscow, President Vladimir Putin described six African countries as the least developed and poorest in the world that are urgently in need grains, alternatively referred to as humanitarian aid, to feed its population.
The beneficiary African countries – Burkina Faso, Central African Republic, Eritrea, Mali, Somalia and Zimbabwe – have warm-heartedly expressed their highest gratitude for the wonderful ‘food-gift’ that was promised, and was chorused in a speech in July 2023 at the second Russia-Africa summit held in St. Petersburg.
During that Russia-Africa summit, Russian President Vladimir Putin promised what was referred to as ‘grains at no-cost delivery’ (when it was first announced to an ear-deafening applause at the inter-parliamentary conference on March 20), and as expected, the Russian Agriculture Ministry has accomplished that mission by despatching a total of 200,000 metric tonnes as humanitarian aid to these African countries. (For further detailed information on this, read the transcript on the Kremlin’s website)
“After the Russia-Africa summit, we have been maintaining relations with African countries and building cooperation,” Patrushev told Putin during the Kremlin meeting. “As a result, we were able to deliver this volume of wheat to these countries quite quickly.” He also told Putin that Russia expected to export up to 70 million metric tonnes of grain in the 2023-2024 agricultural year. In the previous season, Russia shipped 66 million tonnes worth almost $16.5 billion.
This 200,000 metric tonnes of humanitarian aid to Africa has been given unprecedented worldwide publicity. Russian state TV in the past month showed white bags of wheat marked “gift from the Russian Federation to Burkina Faso” and printed with the flags of both countries. “It shows Russia’s solidarity for the Burkinabe people and the good, strong relations between our two countries,” Nandy Some-Diallo, Burkina Faso’s minister for solidarity and humanitarian action, said at a ceremony to mark the donation in January.
TASS state news agency put it most bluntly: “Russia has completed delivery of wheat to six poorest African countries. At the 2023 Russia-Africa Summit, Putin vowed to supply Russian grain free of charge to African countries most in need.“
Since the first announcement in March, followed by the second in July 2023, it several months to deliver to Africa which officials blamed logistics. “The first ship departed on November 7, 2023. The average travel time stood at 30-40 days. The last vessel arrived in Somalia in late January and the unloading of its cargo was completed on February 17,” Agriculture Minister Dmitry Patrushev said, adding that “this is the first time that our country carried out such a large-scale humanitarian operation,” according to Russian state news agency TASS.
Many observers, however, say the Kremlin’s grain gift is a ‘strategic’ move as Putin’s African alliance broadens. “It’s strategic in the sense that Russia realizes these countries are in need and takes advantage of that specific need,” said Zimbabwean development economist Godfrey Kanyenze.
“It is geopolitics at play … the major string is to control or get a head start ahead of other rivals or competitors,” Kanyenze, who is a founding director of the Labor and Economic Development Research Institute of Zimbabwe, told CNN in February 2024, adding that Africa has become a very critical playing ground, further suggested that Russia could be playing the long game to emerge as Africa’s preferred global partner.
Notwithstanding that, African countries generally have goodwill towards Russia, and this has noticeably reflected in their avoidance of criticizing the war in Ukraine which began on February 24, 2022.
While many took a neutral stance, Eritrea voted against a UN General Assembly resolution demanding that Russia withdraw its troops from Ukraine. Reports say the Kremlin is steadily making inroads, taking advantage of instability in countries that used to rely on former colonial ties with Europe. Leaders of those countries have vehemently criticized former colonial relations, moved to cut ties with the West — mainly France — and often narrative fact that Russia never colonized African countries.
The foreign and local media posts on Russia’s humanitarian grain to the six African countries have interestingly received millions of readers and viewers. Some news outlets ran headlines praising Russia for feeding Africa but terribly failed to analyze the implications including the incapacity of these African countries to modernize agriculture instead of settling for food packages. That business often goes beyond humanitarian aid. Almost half of the African continent imports, at least, their wheat from both Russia and Ukraine. Besides wheat and grains, Russia does excellent business with security assistance and arms supplies, mostly in exchange for mineral concessions and uninterrupted access to natural resource deposits in Africa.
Despite frequent complaints against the United States and Europe over global (dis)order and hegemony, further blaming them for over-exploiting Africa, Russia is now at the frontline, unquestionably fighting neo-colonialism on behalf of Africa. Without much doubt, Russian flags have become an acceptable symbol of anti-Western sentiment across Africa. But in practical terms, it rather exposes the collective weaknesses, inability to sharpen development priorities, gross mismanagement and incompetencies of African leaders. In a nutshell, African leaders pay lip service in pursuit of working towards attaining their economic sovereignty.
The system of governance, lack of strategies and poor development policies are largely hindering sustainable development. African leaders have opened faultlines: globe throttling for humanitarian aid at international conferences and summits, switching investment partners, taking their mines and natural resources from one foreign player and passing them on to another foreign player – in the name of fighting neo-colonialism.
The Global Development Index shows that African governments continue to pursue trivial development questions, poor governance and deep-seated corruption. In fact, 80% of Africa’s population still lives in abject poverty, the state development is shabby. And yet blamed the United States and Europe for their under-development and exploitation. The neo-colonialism topic is a source of much discussion at all levels around the world. After pivoting away from the much-disparaged United States and Europe, several African leaders have found new ‘friends’ in the so-called East, enthusiastically bartering their gold and diamond mines.
Often said that Africans have to use their wisdom, and prioritize continental unity and development, especially in the context of the current rapidly changing global architecture. Strict compliance and respecting the policy guidelines of regional and continental organizations, and this step will in turn make them stronger on the international stage.
Better target critical institutional reforms inside Africa, and take strict measures to prevent foreign ‘friends’ from exploiting loopholes in these state institutions. Regardless of the facts, African issues are still very lamentable, and leaders are excited at Africa being described as the poorest in the world, on the one hand. Then, on the other hand, Africa is described as uniquely endowed with enormous untapped resources. The dichotomy of the present day Africa.
What really makes these countries – Burkina Faso, Central African Republic, Eritrea, Mali, Somalia and Zimbabwe – poor? As it is well-known, Zimbabwe, with roughly 15 million people as per the 2022 census, claims to have recorded its highest wheat harvest during the agricultural production year. Thus, Zimbabwe emerges as one of the few African countries which has adopted import substitution agricultural policy and strategically working towards self-sufficiency. Consequently, this could be a great lesson for Burkina Faso, Central African Republic, Eritrea, Mali and Somalia.
Besides the humanitarian grains, Russia plans to earn an estimated revenue amounting to $33 billion by exporting food to African countries. In sharp contrast to food-importing African countries, Zimbabwe has increased wheat production, especially during this crucial time of the current Russia-Ukraine crisis. This achievement was attributed to efforts in mobilizing local scientists to improve the crops’ production. Zimbabwe is an African country that has been under Western sanctions for 25 years, hindering imports of much-needed machinery and other inputs to drive agriculture.
Some experts and international organizations have also expressed the fact that African leaders have to adopt import substitution mechanisms and use their financial resources to strengthen agricultural production systems. Establishing food security is important for millions of people facing hunger in Africa and is crucial for sustainable economic development and the long-term prosperity of the continent.
In this discussion, it is worth to underline that Africa is the world’s second-largest with a huge landscape for agriculture. Despite this low concentration of wealth, recent economic expansion and its young population make Africa an important economic market in the broader global context. But why Africa remains the world’s poorest and least-developed continent? And be running around for food packages? Interesting loans and investment capital have been diverted and siphoned off back to Europe. Africa is now at risk of being in debt, particularly in sub-Saharan African countries.
Addressing food security, therefore, is key for a rising Africa in the 21st century. With the geopolitics intensifying, Africa can only gain contentious economic strength by confronting challenges, handling emerging opportunities, fine-tuning strategies and importantly – utilizing much of its own abundant human and natural resources. It is about time to halt Africa’s dreamy Western and European circus. In a nutshell, take cognizance of the necessity to acknowledge the popular saying ‘African problems, African solutions’ and/or the ‘Africa We Want’ within the parameters of Agenda 2063 as widely propagated by the African Union.
By Chiamaka Happiness Madueke
What’s worse than being taxed? Being taxed invisibly and twice.
When the government tightens monetary policy; hikes taxes, and removes subsidies, all in one breath, you would expect the economy to breathe easier. But in Nigeria, the air seems to feel thinner.
Over the past few years, Nigeria has embraced a series of bold economic reforms; floating the Naira, removing fuel subsidies, and pushing revenue generation targets. These actions can generally signal fiscal discipline and long-term growth.
For example, the Nigerian government reportedly saved N3.6 trillion from subsidy removal in just the second half of 2023, but beneath the policy headlines lies a quieter story: one where debt servicing, inflation, taxation, and informal charges collide to create an invisible burden on everyday transactions.
Yes, between visible taxes, invisible inflation, and unofficial levies collected by everyone and no one, low-income Nigerians allegedly seem trapped in a system that squeezes them from every direction.
Let me digress for a second, but I’ll bring it back in a bit, I promise.
At first glance, taxation and inflation may seem like two separate forces: one a fiscal tool, the other a macroeconomic consequence. But in Nigeria’s current climate, they’re colliding in real time, shaping the daily experience of citizens and businesses alike.
The Taxation Puzzle
Nigeria’s tax-to-GDP ratio remains among the lowest globally; just 10.86 per cent as of 2022, according to the Federal Inland Revenue Service (FIRS). That’s well below the 15–25 per cent global average, and even lower than the African average. Yet, the informal economy, which contributes nearly 58 per cent to GDP, bears much of the untracked tax burden through local levies and fees.
This mismatch reveals a chronic revenue problem and this challenge becomes even more critical when you consider the growing cost of debt. But borrowing isn’t inherently bad; in fact, strategic debt can stimulate growth if channelled into things like power, roads, manufacturing, or digital infrastructure, projects that have a way of boosting the economy.
In an interview with Arise News, the CEO of Sterling Bank, Mr Abubakar Suleiman, said, “If you are not collecting enough revenue to service a debt, that is a problem”. But it is even worse when you’re not using that debt for productive, economic reasons; that’s a structural problem.
Then I ran the numbers, in 2022, Nigeria reportedly spent a large per cent of its revenue on debt servicing. That means most of what we earn do not go to schools, hospitals, or industrial development, they go to paying back interest. That’s like living on a credit card and using it to buy lunch, not build a business that would make profit.
In 2023, 64.5 per cent of the federal government’s total revenue was used for debt servicing, according to a BusinessDay analysis of data from the Budget Office.
Although this was higher than the 48.5 per cent in 2022, it was still less than the 71.8 per cent in 2021. In 2023, actual revenue was N11.88 trillion, slightly above the predicted N11.05 trillion, while actual debt service costs were N7.66 trillion, 16.9 per cent higher than the projected N6.56 trillion.
In comparison, Nigeria’s revenue for the fiscal year 2022 was N7.76 trillion, falling short of the N9.97 trillion projection. The fact that debt servicing increased to N3.76 trillion from an anticipated N3.69 trillion in spite of this shortfall shows that debt obligations are an unavoidable burden even in cases where revenues are below budget.
This pattern emphasizes how little financial flexibility the government has, particularly when it comes to financing infrastructure or social projects.
By September 30, 2024, Nigeria’s total public debt had climbed to N142.3 trillion, reflecting a N8.02 trillion increase from N134.3 trillion in June 2024. This 5.97 per cent rise was attributed not only to additional borrowing but also to the depreciation of the Naira, which significantly inflated the naira value of external debt.
The surge in debt has not been matched by a proportional increase in productive investment, raising questions about the sustainability and strategic intent of government borrowing.
Adding to the concern, the total debt service cost reached an estimated N3.57 trillion in just the third quarter of 2024 alone.
With limited income from formal taxation, the government allegedly struggles to adequately fund infrastructure, education, healthcare, and essential services.
In response, efforts are underway to:
- Widen the tax base by formalizing more of the informal sector,
- Improve compliance through digital platforms and data integration,
- Rationalize outdated and inefficient tax incentives.
However, increasing tax pressure and its enforcement especially now can be politically unpopular and economically dangerous. Why? Because inflation is already eating through household budgets.
The Inflation Squeeze
Nigeria’s inflation rate has remained stubbornly high, largely driven by the rising cost of food prices, currency depreciation, removal of fuel subsidy and Monetary policies like floating the Naira.
As of early 2024, inflation was between 28–30 per cent, with core inflation also climbing. This diminishes buying power, worsens poverty, and increases the expenses of conducting business.
Essentially, inflation operates as an unnoticed tax, one that hits the vulnerable the hardest, especially low and middle-income earners whose wages aren’t keeping pace.
One key statement caught my attention in recent times, “We must choose between Taxation or Inflation.”
At first, that sounded a bit extreme. But the more I thought about it, the more it made sense.
Taxation is visible, structured, and can be progressive. Inflation, on the other hand, is unpredictable and regressive, a silent thief that spares no one, but affects the poor more because they have less to spend.
For low-income Nigerians, a controlled tax system paired with targeted public investment, might be more manageable than the current wave of inflation that raises the price of garri, beans, and palm oil every other week for Aunty Onyeka and thousands like her.
The “Other” Taxes We Don’t Talk About
But this brings me to a creeping question. What about the unofficial taxes? The ones no one talks about?
How are the indirect taxes collected from public transporters by local levy collectors accounted for? The levies collected from Mama Basirat who hawks around Oshodi market selling cooked food has watched the price of palm oil jump three times in six months while still paying a N500 “market ticket” every morning before selling a single plate of rice. Who tracks that revenue?
Yes, the most shocking revelation for me has been realizing that even hawkers – hawkers, who sell sachet water or fruit walking down roads and the street corners are being taxed in some areas.
Or rather, charged daily levies by local agents. And no, I am not condemning that, just that this issue raises some serious questions in my head:
- Where does this money go?
- Is it remitted to any official government account?
- What public service is being provided in return?
If we zoom out, the irony becomes obvious. We keep saying Nigeria’s tax-to-GDP ratio is too low. Yet, many of the poorest Nigerians are already being taxed, just not in ways that show up in FIRS data.
They’re taxed by local councils, market unions, transport associations, and sometimes even self-appointed local revenue agents. Is this form of taxation? It’s neither progressive nor transparent, nor accountable.
So, What Are We Really Talking About?
When we push for increasing tax revenue, we often picture corporate profits or high-net-worth individuals. But the reality? Many of the levies, fees, and informal charges disproportionately hit those in the informal sector; drivers, traders, hawkers, the same people inflation is already punishing the most. It’s a vicious cycle.
Drivers hike transport fares to meet the levies. Hawkers bump up prices to stay afloat and somewhere in the middle, people start paying more for food, transport, and basic needs. So, yes, taxation may be more beneficial than inflation but only if it’s fair, formal, and genuinely
used to improve lives. Until then, we seem to remain stuck in a system where the poorest pay the most, twice over: Once through rising prices that their income can barely meet, and again through levies that don’t even show up in the books. The informal sector is already contributing indirectly through taxes and levies. But where that money goes, that’s the real mystery.
The discussion about taxation in Nigeria must expand beyond the official tax system to consider these informal levies. And that, more than anything, is what really got my thinking juices flowing.
Maybe the conversation shouldn’t just be about taxing more, but taxing better, and ensuring value for those already overburdened.
By Kehinde Ogundare
Artificial Intelligence (AI) is revolutionising industries globally, and Nigeria is no exception to this trend. Businesses in Nigeria are increasingly exploring AI-driven automation to enhance efficiency, drive innovation, and remain competitive. However, AI adoption remains relatively low, as many businesses struggle to identify practical use cases that deliver measurable ROI.
A key emerging trend addressing this challenge is Agentic AI–a more advanced form of AI that enables businesses to create autonomous digital agents capable of handling complex tasks, optimising workflows, and improving decision-making. Unlike traditional AI models that react to user inputs, Agentic AI proactively learns, makes decisions, and automates entire processes, making it a game-changer for businesses looking to scale productivity.
The Rise of Agentic AI in Business
Globally, AI adoption has grown, but many businesses still hesitate due to concerns over cost, implementation complexity, and lack of clear ROI. According to McKinsey & Company, organisations that have successfully integrated AI-driven automation report efficiency improvements ranging from 20–30%. The key to unlocking AI’s full potential lies in specialised AI models designed for specific business functions–precisely where Agentic AI excels.
For example, in customer service, AI-powered agents can automate repetitive tasks, resolve issues faster, and enhance customer satisfaction. Studies have shown that nearly 88% of Nigerian consumers consider customer experience critical to their purchasing decisions. Agentic AI can help businesses meet these expectations by providing instant, personalised support.
In sales, AI-driven Sales Development Representative (SDR) Agent can analyse customer interactions, identify sales opportunities, and suggest targeted outreach strategies. Research highlights that businesses using AI in sales automation experience increase conversion rates and higher sales productivity.
Similarly, Human Resources (HR) operations are being transformed by AI-powered automation. Tasks such as leave management, employee onboarding, and performance tracking can be effectively handled by Agentic AI, allowing HR professionals to focus on strategic employment engagement. Deloitte indicates that AI-powered HR automation reduces administrative workload significantly, enhancing employee satisfaction and operational efficiency.
In IT operations, AI-powered Help Desk Agents streamline troubleshooting, diagnose issues, and execute quick fixes. This reduces downtime and significantly improves operational continuity and productivity.
How Zoho is Innovating with Agentic AI
At Zoho, we recognise the potential of Agentic AI and have developed Zia Agents for specific use cases within various products. Unlike generic AI models, Zia Agents provide contextual intelligence, real-time decision-making, and deep business-specific insights. Additionally, Zoho ensures that Zia agents operate within a secure infrastructure, fully compliant with various global privacy regulations, making it a trusted solution for businesses handling sensitive data.
We have also launched Agent Studio, an AI-powered platform that enables our customers, partners, and independent developers to create specialised agents for their specific needs. These can be hosted on Agent Marketplace, where they can be monetised. Nigerian businesses can utilise Agent Studio to build hyperlocal agents for various industries.
The Future of Business with Agentic AI
The shift towards Agentic AI is inevitable as businesses increasingly seek smarter, more autonomous systems to drive efficiency and growth. Organisations that embrace AI-driven today will be better positioned to compete in Nigeria’s evolving digital economy.
For Nigerian businesses looking to scale efficiently, Agentic AI offers a practical and results driven approach to automation. By leveraging Zoho’s Zia Agents, companies can achieve higher productivity, ensuring long-term success in a competitive marketplace.
Kehinde Ogundare is the Country Head for Zoho Nigeria
By Timi Olubiyi, PhD
Internet users are growing at an unprecedented rate, and in Nigeria, for instance, internet users have expressed concerns and frustration over the data price increase in recent times, with many feeling its negative impact on their budgets and mobile smartphone usage.
Major networks such as MTN, Airtel, and Glo have seen a close to 50 per cent increase in Nigerian mobile data prices, with no known alternative available. This shows the significance of data and internet usage, highlighting its role in the digital age and the rapid growth of data and content creation across Africa.
From mobile phone data and e-commerce activities to social media interactions and government services, vast amounts of information are being created daily, which is accessible through internet usage.
The economic and technological landscape of Africa has been undergoing significant evolution recently. The continent is inhabited by over 1.4 billion individuals, and a larger portion of them create, use, and feed on data— which is a digital transformation.
The convergence of rising mobile phone usage, enhanced internet accessibility, and a youthful, technologically adept demographic has positioned Africa at the forefront of global discussions around technology innovation and data generation.
Recently, the phrase “data is the new oil” has gained significant traction in discussions related to technology, business, and the digital economy. But it is public knowledge that when it comes to oil, its availability is limited to certain areas of the world.
On the other hand, tech giants like Google, Facebook, Netflix, Amazon, Microsoft, and Apple control most of the world’s data.
According to a study by Sandvine in 2021, these companies are responsible for about 57 per cent of global data flow, and they have all commodified data. The huge amount of data controlled by these mega-companies is bigger than most small businesses and corporations. But, anyway, this would be another story piece for another time.
In the view of the author, if we want to know if data is really the “new oil”, we need to first look at how it builds value. Data by itself is not useful, just like in the case of oil. Raw data, without any processing or analysis, is merely a collection of information that requires interpretation.
For instance, an online store might keep track of what customers do, like what links they click on, how long they stay on product pages, and what they bought in the past.
However, this data remains mostly useless until it undergoes processing, analysis, and transformation into actionable ideas. Business managers in Africa should follow this path and should adhere to a mindset of ‘facts superiority over opinion’.
As businesses expand, an increasing number of individuals express ideas regarding the actions to be undertaken. However, it is beneficial to employ a data-insight mentality. All company metrics can be tested, measured and improved upon.
It is important to note that business owners/managers must have real-time access to the most important data in their business. Understanding which Key Performance Indicators (KPIs) affect revenue and profit is significantly more crucial than the revenue and profit figures themselves.
When data is cleaned up and analysed, it becomes really useful. Similar to refining oil to produce petrol, diesel, and other products, processing data yields beneficial outcomes. This is where Google and Facebook shine. They have put a lot of money into technologies like machine learning and big data analytics that can turn huge amounts of raw data into personalised ads, recommendation engines, and models that can predict the future. In this way, they make money for both their users and their owners.
In Africa, the idea of “data as the new oil” is particularly appealing because it could help the continent skip ahead in the normal stages of economic growth. Mobile phones let African countries get around the need for landline infrastructure.
Similarly, data technologies could help African economies get past older, resource-heavy ways of growing, leading to new ideas and long-term growth in fresh ways. In agriculture, for instance, data analytics and satellite imaging can help farmers figure out how the weather will behave, get the most out of their crops, and make harvest supply lines work better. Data-driven solutions in healthcare, like electronic health records (EHRs) and predictive analytics, can help find diseases, control outbreaks, and make healthcare better.
In the same way, data-driven education platforms can give students personalised learning experiences and give teachers and managers useful information about how students are doing and what they need. More so, businesses could be data-driven by setting up special internal research units on data, where insights can be generated to improve on decision-making.
Looking ahead, there are evident similarities between data and oil; much like crude oil, data is valuable. Data is not a naturally occurring resource like oil; it is a by-product of human activity. Oil is a limited resource, whereas data is plentiful and perpetually increasing. Raw data must be processed and analysed to derive significant insights and facilitate informed decision-making.
This is where artificial intelligence (AI) is relevant. AI acts as the ultimate data refinery, enabling the conversion of extensive information into meaningful insights. In contrast to oil, which is extracted and processed by a limited number of firms, data is more extensively disseminated, including various stakeholders in its collection, analysis, and utilisation.
Anticipating the future, data will probably witness ongoing advancements in many domains because it is a strategic asset for business and economic growth. With it, people, organisations, and governments can make better decisions. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi is an entrepreneurship and business management expert with a PhD in Business Administration from Babcock University, Nigeria. He is a prolific investment coach, author, seasoned scholar, chartered member of the Chartered Institute for Securities and Investment (CISI), and a Securities and Exchange Commission (SEC)-registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.
The opinions expressed in this article are those of the author, Dr Timi Olubiyi, and do not necessarily reflect the opinions of others.
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